Davenport, IA
(52801)

Today

Tonight

Rita Crundwell, former comptroller for Dixon, Ill., leaves federal court in Rockford, Ill., Monday, May 7, 2012, after pleading not guilty at her arraignment to charges that accuse her of stealing tens of millions of dollars from the community. Prosecutors contend that Crundwell had been transferring Dixon's money to a secret account since at 1990 and using the money to create one of the nation's leading horse-breeding operations and buy luxury homes, cars and jewelry. (AP Photo/Robert Ray)

Robert Ray

Rita Crundwell, center, former comptroller for Dixon, Ill., arrives at federal court in Rockford, Ill., Monday, May 7, 2012, with attorneys, Paul Gaziano, left, and Kristin Carpenter, for her arraignment to face charges that accuse her of stealing tens of millions of dollars from the community. A federal grand jury last month returned an indictment charging Crundwell with wire fraud for allegedly siphoning more than $53 million from Dixon since 1990 into a secret account. (AP Photo/Robert Ray)

Rita Crundwell

DIXON'S $53M

DIXON, ILL.

Former Dixon CFO pleads not guilty to taking $53M

The Associated Press

May 7, 2012

Robert Ray

Rita Crundwell, former comptroller for Dixon, Ill., leaves federal court in Rockford, Ill., Monday, May 7, 2012, after pleading not guilty at her arraignment to charges that accuse her of stealing tens of millions of dollars from the community. Prosecutors contend that Crundwell had been transferring Dixon's money to a secret account since at 1990 and using the money to create one of the nation's leading horse-breeding operations and buy luxury homes, cars and jewelry. (AP Photo/Robert Ray)

Robert Ray

Rita Crundwell, center, former comptroller for Dixon, Ill., arrives at federal court in Rockford, Ill., Monday, May 7, 2012, with attorneys, Paul Gaziano, left, and Kristin Carpenter, for her arraignment to face charges that accuse her of stealing tens of millions of dollars from the community. A federal grand jury last month returned an indictment charging Crundwell with wire fraud for allegedly siphoning more than $53 million from Dixon since 1990 into a secret account. (AP Photo/Robert Ray)

Rita Crundwell

UPDATED: ROCKFORD, Ill. — The former comptroller of a small northern Illinois city pleaded not guilty Monday to charges alleging she stole more than $53 million of the public’s money to fund a lavish lifestyle and create one of the nation’s foremost horse-breeding operations.

Rita Crundwell and her attorney, Paul Gaziano, refused to comment after leaving the federal courthouse in Rockford, where she pleaded not guilty to a single count of wire fraud. Crundwell, who is free on a recognizance bond, could be sentenced to up to 20 years in prison if convicted.

Prosecutors allege that since 1990, the 58-year-old Crundwell stole more than $53 million from Dixon, where oversaw public finances as the city comptroller since the 1980s, by diverting it to an account she had set up for personal use and misleading city officials.

Authorities say Crundwell bought luxury homes and vehicles, and spent millions on her horse-breeding operation, which produced 52 world champions in exhibitions run by the American Quarter Horse Association.

Prosecutors say her scheme unraveled only when a co-worker filling in for Crundwell while she was on an extended vacation stumbled upon the secret bank account.

Her arrest stunned tiny Dixon, a small city along a picturesque vein of the Mississippi River about a two-hour drive west of Chicago in Illinois farm country. Its 16,000 people are largely lower-middle class, working at factories, grain farms, the local prison and a hospital, among other places.

Prosecutors also have filed a lawsuit seeking 311 registered quarter horses and dozens of foals that are expected to be born this spring. Prosecutors said while announcing the lawsuit that they plan to have the horses sold and to give the proceeds to Dixon, where the late President Ronald Reagan lived as a boy.

EARLIER STORY: ROCKFORD, Ill. — A woman has pleaded not guilty to charges that allege she stole more than $53 million from the Illinois community whose finances she oversaw for decades.

Former Dixon financial officer Rita Crundwell pleaded not guilty to wire fraud in a Rockford courtroom on Monday. She will be represented by public defenders.

Prosecutors contend that Crundwell had been transferring Dixon’s money to a secret account since at 1990 and using the money to create one of the nation’s leading horse-breeding operations and buy luxury homes, cars and jewelry.

Crundwell and attorney, Paul Gaziano, refused to comment on the case.

Get news headlines sent daily to your inbox

QCTimes.com Daily Headlines

Obituaries

I understand and agree that registration on or use of this site consitutes agreement to its user agreement and privacy policy.

EARLIER STORY: ROCKFORD, Ill. — The former financial officer for the northern Illinois city of Dixon is slated to appear in court to face charges that accuse her of stealing tens of millions of dollars from the community.

Rita Crundwell is expected to enter a plea at her arraignment today.

A federal grand jury last month returned an indictment charging Crundwell with wire fraud for allegedly siphoning more than $53 million from Dixon since 1990 into a secret account.

Prosecutors contend she used the money to fund one of the nation’s leading horse breeding operations and feed a lavish lifestyle that kept her outfitted with cars and hundreds of thousands of dollars’ worth of jewelry.

Her attorney, Paul Gaziano, has refused to comment on the case, citing rules of the federal defender program.